Of the many strategic planning models that exist, the Blue Ocean Strategy could be considered the pacifist of the group. Show
Based on an eponymously titled book, this strategy argues that “cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.” Companies should instead look for new market space and ways to reinvent the industry. In short, avoid head-to-head competition and focus on innovation. The goal of a Blue Ocean Strategy is for organizations to find and develop “blue oceans” (uncontested, growing markets) and avoid “red oceans” (overdeveloped, saturated markets). A company will have more success, fewer risks, and increased profits in a blue ocean market. Summary Of The Blue Ocean StrategyThis strategic planning model is a departure from the typical management exercise that focuses on number crunching and competitive benchmarking. Here are key points of the Blue Ocean Strategy:
Take your strategy from a grand plan to the real deal with these free strategic planning templates.4 Examples Of Blue Ocean StrategySeeing is believing. Here are a few organizations that successfully captured a blue-ocean market:
Using Blue Ocean With Your Existing Strategic Planning ModelMost likely, your organization is already running on an existing strategic planning model. Luckily, the Blue Ocean Strategy can be paired with other models. It doesn’t need to replace your current mode of operation. Here are a few examples: Blue Ocean + SWOT
Blue Ocean + Balanced Scorecard
Think of the Blue Ocean Strategy as a way to open up opportunities and markets for a new organization, or an existing organization looking to grow. Your current strategy reporting model will help execute the blue ocean ideas. Advice On Implementing A Blue Ocean StrategyWhen you begin your strategic planning, recognizing the difference between a red and blue ocean may not be as easy as the colors would indicate. Start by identifying what your target market needs and doesn’t currently have. Then look at what existing organizations are doing well (or not so well) to serve that market and determine how you can differentiate (for example, by price point or audience). Use the above checklist as a guide through the process and hold internal brainstorming sessions for each point. ClearPoint’s experience using the Blue Ocean Strategy Here at ClearPoint, we recently used the framework for our own business. These were the general questions we discussed and answered in order to highlight our blue ocean opportunities.
We learned that on any given feature, there are lots of competitors that offer good solutions. But no other company offers all of the necessary features for strategy reporting in one place. Blue Ocean challenges companies to push the boundaries of their industries and offer consumers something unique of immense value. By defining and seeing examples of the Blue Ocean Strategy, your organization can learn how to execute on this strategic planning model and successfully reconstruct your market. Once you know where you’re competing, you can add unique goals and measures to track your progress in charting that blue ocean.
Which one is the blue ocean strategy involves creating a new untapped market?Blue Ocean Strategy
It is best to win without fighting. A blue ocean strategy involves creating a new, untapped market rather than competing with rivals in an existing market (Kim, 2004). This strategy follows the approach recommended by the ancient master of strategy Sun-Tzu in the quote above.
What is the Blue Ocean strategy Mcq?BLUE OCEAN STRATEGY is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand.
What are the 4 strategies of blue ocean strategy?SEQUENCE OF CREATING A BLUE OCEAN. Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating.
What is blue ocean strategy concept?The blue ocean strategy represents the simultaneous pursuit of high product differentiation and low cost, making the competition irrelevant. The name “blue ocean strategy” comes from the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant.
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